I was wondering if any of you would know what the markup on the profitable surf shop goods are. I’ve heard that surfboards don’t make that much money for a shop so that’s why they 'tute themselves out to the big name brands.
Quote:
I was wondering if any of you would know what the markup on the profitable surf shop goods are. I’ve heard that surfboards don’t make that much money for a shop so that’s why they 'tute themselves out to the big name brands.
100% give or take…softgoods, accessories etc.
surfboards roundabout 30% give or take
imported surfboards 60-100%
Thanks for the reply!
Chinese shortboards cost 150 to 190, Boardworks cost about 230 up to 9’ if you buy the moulds, Surftechs between 380 and 525 (LBs)
handshaped depends on the shaper
Clothing…who cares
one thing to remember though is that certain things you buy at wholesale as a dealer you have to buy in volume or in lots inorder to get the discount. So typically you have order the chinese boards buy container loads. Store owners know about this cause they come to us for lines of credit to finance the inventory the must purchase inorder to resell to make their money.
four years ago when the chinese boards and boardworks were being shipped in to Hawaii the offer to me was between $20,000-$30,000 down as an investment for a container any size any shape but a full container. To offset the investment alot of guys were huddling up to split the container. That’s why guys like boardworkshawaii as well as surftech had to get their distribution channels spread as wide and as fast as possible.
Because once I push out the funding for the purchase the clock starts ticking and like a loanshark, eventually the banker will come knocking at the retailer, auto dealer, lumberyard whom ever to call my loan or check on the status of the “my” inventory. If the value of the inventory doesn’t look like it’ll hold the value of the line of credit of loan then I’ll call and foreclose on the inventory and try and recoup my loss.
so it’s more than just the unit cost you have to worry about as a retailer but more what’s the commitment on the volume and turnover you have to meet to satisfy your wholesaler and lender.
That’s why you have to give credit to any small guy that want’s to make an honest buck facing the boh block competition entering the arena nowadays.
no one will ever admit it but in the end it truly is all about the money in one way or another. The seret is find a way to make it all work out as a win win but that’s really hard to do when things are as cut throat as the boardmaking business.
interesting . . . this is why lots of shops do consignment vs purchasing used surfboards . . . I kinda had an idea of how it works in the lender / wholesaler section . . . but this sheds some light on how retail decision making.
it would be possible to bypass the lender
and get a line of credit for say 6 months direct from the manufacturer
they would charge interest on unpaid accounts
and reserve the right to take back the goods
if they wanted too but theyd rather the interest and money
one thing to remember though is that certain things you buy at wholesale as a dealer you have to buy in volume or in lots inorder to get the discount. So typically you have order the chinese boards buy container loads. Store owners know about this cause they come to us for lines of credit to finance the inventory the must purchase inorder to resell to make their money.
four years ago when the chinese boards and boardworks were being shipped in to Hawaii the offer to me was between $20,000-$30,000 down as an investment for a container any size any shape but a full container. To offset the investment alot of guys were huddling up to split the container. That’s why guys like boardworkshawaii as well as surftech had to get their distribution channels spread as wide and as fast as possible.
Because once I push out the funding for the purchase the clock starts ticking and like a loanshark, eventually the banker will come knocking at the retailer, auto dealer, lumberyard whom ever to call my loan or check on the status of the “my” inventory. If the value of the inventory doesn’t look like it’ll hold the value of the line of credit of loan then I’ll call and foreclose on the inventory and try and recoup my loss.
so it’s more than just the unit cost you have to worry about as a retailer but more what’s the commitment on the volume and turnover you have to meet to satisfy your wholesaler and lender.
That’s why you have to give credit to any small guy that want’s to make an honest buck facing the boh block competition entering the arena nowadays.
no one will ever admit it but in the end it truly is all about the money in one way or another. The seret is find a way to make it all work out as a win win but that’s really hard to do when things are as cut throat as the boardmaking business.
interesting . . . this is why lots of shops do consignment vs purchasing used surfboards . . . I kinda had an idea of how it works in the lender / wholesaler section . . . but this sheds some light on how retail decision making.
it would be possible to bypass the lender
and get a line of credit for say 6 months direct from the manufacturer
they would charge interest on unpaid accounts
and reserve the right to take back the goods
if they wanted too but theyd rather the interest and money